New Govt Regulation: HIGHER PRICED MORTGAGE LOANS (HPML) !!!

[HLS]

The clowns in govt ALLOWED the housing bubble to inflate because it was good for the economy, by ALLOWING 100% financing to people who lied about their income & assets. I am yet to hear anyone from the govt convey this.

It’s THAT simple. GREED.
Greenspan and low interest rates werent the problem. It was lack of a down payment.
Millions has been spent talking about what caused the bubble, and ignorant people keep saying that “nobody” saw it coming.

Requiring at least a 10% down payment, millions would have never been able to “buy” a house and prices would have never been pushed up.

Rates are low today and millions cannot qualify for one reason or another. FHA is the new sucker’s loan and the next subprime (without a prepay penalty)

If you don’t abuse a child, then you don’t need regulations against child abuse.
If you don’t drive drunk, you don’t need regulations against driving drunk.
If you aren’t ignorant or greedy then you don’t need twisted govt regulations against being ignorant or greedy.

The regulations to “protect” consumers are a govt attempt to avoid admitting what the real problem was/is…perhaps they don’t even understand.

Appraisal regulations and disclosure regulations are not going to fix the stupidity and greed of millions of people.
I never said that ARMS or prepay penalties were a good thing…
I explain options to people in words that they can understand, but now I have to be regulated by APOR on the week that a loan is locked and other mumbo jumbo.

If the govt is creating all this regulation to protect consumers, who is going to protect people from the govt ???

You cannot regulate that people be protected from themselves. You cannot regulate stupidity, ignorance and greed however the govt is trying by saying they know what is good for people, and it’s more regulations as the mumbo jumbo in the post above… Do you feel safer with these regulations in place ??… HLS

[CA renter]

HLS,

We are in agreement about loose lending being the main problem. However, I’ve talked to a number of people who said they were misinformed about their loans during the origination process. Oftentimes, they signed one set of docs and then at closing were presented with docs that had totally different terms.

Also, you’re familiar with these documents, and most Piggs are very intelligent and are **capable** of reading through all the legalese and nonsense included in the documentation. Most peole out there are not.

Additionally, they were often told that, “these are just the standard forms, you don’t have to read everything,” when they were signing. I was personally told this and rushed through a signing by a notary who was VERY ticked off at me because I insisted I read through every line of every page before signing. Not everyone has the personality to challenge others, especially when the “others” are perceived as the experts.

Low rates caused the environment in which 0% down and stated-doc loans could exist. When rates are held so low for so long, they force fixed-income investors to reach for yield and move out on the risk curve. I am personally feeling this pressure myself, because rates have been so low for so long. Imagine how a pension fund feels when their solvency depends on a 7-9% return, and they are sitting in a decade-long environment where 1-4% is the norm in “risk-free” investments.

Low rates are most certainly the primary cause of all the adjustable-rate mortgages issued during the bubble period, because lenders wanted to shift the interest rate risk onto the borrowers.

The causes of the bubble are varied and interrelated, but low rates **and the correct belief that the govt would come to the rescue when everything failed** were the catalyst for the problems, IMHO.

Still, you and I are on the same page, and see the foreclosures as the best and most efficient solution to all of the problems in the housing and mortgage markets. That way, we might finally see the “20% for owner-occupied” and “30% for investment” down payments that would give us a sustainable, low-risk housing/mortgage market over the long run.

[CA renter]

HLS,

We are in agreement about loose lending being the main problem. However, I’ve talked to a number of people who said they were misinformed about their loans during the origination process. Oftentimes, they signed one set of docs and then at closing were presented with docs that had totally different terms.

Also, you’re familiar with these documents, and most Piggs are very intelligent and are **capable** of reading through all the legalese and nonsense included in the documentation. Most peole out there are not.

Additionally, they were often told that, “these are just the standard forms, you don’t have to read everything,” when they were signing. I was personally told this and rushed through a signing by a notary who was VERY ticked off at me because I insisted I read through every line of every page before signing. Not everyone has the personality to challenge others, especially when the “others” are perceived as the experts.

Low rates caused the environment in which 0% down and stated-doc loans could exist. When rates are held so low for so long, they force fixed-income investors to reach for yield and move out on the risk curve. I am personally feeling this pressure myself, because rates have been so low for so long. Imagine how a pension fund feels when their solvency depends on a 7-9% return, and they are sitting in a decade-long environment where 1-4% is the norm in “risk-free” investments.

Low rates are most certainly the primary cause of all the adjustable-rate mortgages issued during the bubble period, because lenders wanted to shift the interest rate risk onto the borrowers.

The causes of the bubble are varied and interrelated, but low rates **and the correct belief that the govt would come to the rescue when everything failed** were the catalyst for the problems, IMHO.

Still, you and I are on the same page, and see the foreclosures as the best and most efficient solution to all of the problems in the housing and mortgage markets. That way, we might finally see the “20% for owner-occupied” and “30% for investment” down payments that would give us a sustainable, low-risk housing/mortgage market over the long run.

[CA renter]

HLS,

We are in agreement about loose lending being the main problem. However, I’ve talked to a number of people who said they were misinformed about their loans during the origination process. Oftentimes, they signed one set of docs and then at closing were presented with docs that had totally different terms.

Also, you’re familiar with these documents, and most Piggs are very intelligent and are **capable** of reading through all the legalese and nonsense included in the documentation. Most peole out there are not.

Additionally, they were often told that, “these are just the standard forms, you don’t have to read everything,” when they were signing. I was personally told this and rushed through a signing by a notary who was VERY ticked off at me because I insisted I read through every line of every page before signing. Not everyone has the personality to challenge others, especially when the “others” are perceived as the experts.

Low rates caused the environment in which 0% down and stated-doc loans could exist. When rates are held so low for so long, they force fixed-income investors to reach for yield and move out on the risk curve. I am personally feeling this pressure myself, because rates have been so low for so long. Imagine how a pension fund feels when their solvency depends on a 7-9% return, and they are sitting in a decade-long environment where 1-4% is the norm in “risk-free” investments.

Low rates are most certainly the primary cause of all the adjustable-rate mortgages issued during the bubble period, because lenders wanted to shift the interest rate risk onto the borrowers.

The causes of the bubble are varied and interrelated, but low rates **and the correct belief that the govt would come to the rescue when everything failed** were the catalyst for the problems, IMHO.

Still, you and I are on the same page, and see the foreclosures as the best and most efficient solution to all of the problems in the housing and mortgage markets. That way, we might finally see the “20% for owner-occupied” and “30% for investment” down payments that would give us a sustainable, low-risk housing/mortgage market over the long run.

[CA renter]

HLS,

We are in agreement about loose lending being the main problem. However, I’ve talked to a number of people who said they were misinformed about their loans during the origination process. Oftentimes, they signed one set of docs and then at closing were presented with docs that had totally different terms.

Also, you’re familiar with these documents, and most Piggs are very intelligent and are **capable** of reading through all the legalese and nonsense included in the documentation. Most peole out there are not.

Additionally, they were often told that, “these are just the standard forms, you don’t have to read everything,” when they were signing. I was personally told this and rushed through a signing by a notary who was VERY ticked off at me because I insisted I read through every line of every page before signing. Not everyone has the personality to challenge others, especially when the “others” are perceived as the experts.

Low rates caused the environment in which 0% down and stated-doc loans could exist. When rates are held so low for so long, they force fixed-income investors to reach for yield and move out on the risk curve. I am personally feeling this pressure myself, because rates have been so low for so long. Imagine how a pension fund feels when their solvency depends on a 7-9% return, and they are sitting in a decade-long environment where 1-4% is the norm in “risk-free” investments.

Low rates are most certainly the primary cause of all the adjustable-rate mortgages issued during the bubble period, because lenders wanted to shift the interest rate risk onto the borrowers.

The causes of the bubble are varied and interrelated, but low rates **and the correct belief that the govt would come to the rescue when everything failed** were the catalyst for the problems, IMHO.

Still, you and I are on the same page, and see the foreclosures as the best and most efficient solution to all of the problems in the housing and mortgage markets. That way, we might finally see the “20% for owner-occupied” and “30% for investment” down payments that would give us a sustainable, low-risk housing/mortgage market over the long run.

[CA renter]

HLS,

We are in agreement about loose lending being the main problem. However, I’ve talked to a number of people who said they were misinformed about their loans during the origination process. Oftentimes, they signed one set of docs and then at closing were presented with docs that had totally different terms.

Also, you’re familiar with these documents, and most Piggs are very intelligent and are **capable** of reading through all the legalese and nonsense included in the documentation. Most peole out there are not.

Additionally, they were often told that, “these are just the standard forms, you don’t have to read everything,” when they were signing. I was personally told this and rushed through a signing by a notary who was VERY ticked off at me because I insisted I read through every line of every page before signing. Not everyone has the personality to challenge others, especially when the “others” are perceived as the experts.

Low rates caused the environment in which 0% down and stated-doc loans could exist. When rates are held so low for so long, they force fixed-income investors to reach for yield and move out on the risk curve. I am personally feeling this pressure myself, because rates have been so low for so long. Imagine how a pension fund feels when their solvency depends on a 7-9% return, and they are sitting in a decade-long environment where 1-4% is the norm in “risk-free” investments.

Low rates are most certainly the primary cause of all the adjustable-rate mortgages issued during the bubble period, because lenders wanted to shift the interest rate risk onto the borrowers.

The causes of the bubble are varied and interrelated, but low rates **and the correct belief that the govt would come to the rescue when everything failed** were the catalyst for the problems, IMHO.

Still, you and I are on the same page, and see the foreclosures as the best and most efficient solution to all of the problems in the housing and mortgage markets. That way, we might finally see the “20% for owner-occupied” and “30% for investment” down payments that would give us a sustainable, low-risk housing/mortgage market over the long run.

[HLS]

CA,,
Anyone who was “misinformed” about their loan either dealt with a predator OR just didn’t understand what they were doing. Nobody wants to admit that they just didn’t understand!!

With a 30 year fixed loan the payment NEVER changes. Make your payment by the 15th of each month and you will NEVER have a late charge or a problem. How hard is that to grasp ?

When somebody wants to get an ARM or an interest only loan because they think that they are going to beat the system, they are gambling.
That’s where the problems start. Greed kicks in.

Anyone is absolutely entitled to read every word on every page if they choose to. I’d like to know what you learned by doing so.

I cannot imagine putting docs in front of someone for anything other than what they agreed to.
This is what people get (and deserve) when they shop by rate or blindly go to a relative, friend or neighbor to get their loan.

The most foolish question that can be asked when “shopping” for a loan is “What’s your rate” yet that’s how most ppl do it, and they end up with the biggest liar.
It’s about as smart as “shopping” for a doctor, lawyer or mechanic solely by price. You’ll probably end up with a butcher or a hack.

There were plenty of idiotic mortgage advisors that made tens of thousands of dollars by giving greedy ppl bad advice.
If people were given an option to pay $100 to get honest advice they wouldn’t pay it. Advice from predators was free.

People were foolish to take ARM’s at a time of historically low rates. Most people could have chosen a 10 YR ARM or a 30 YR fixed, but the rate was higher and they were greedy. They shopped by rate and trusted a predator. It continues today.

People need to take responsibility for their decisions. People who fell for free/no cost loans will end up paying thousands of dollars in the long run if they stay in the loan. They don’t have a clue how screwed they are. There are know it alls on this site as well that think they understand loan options but actually don’t.

People don’t want to admit that they don’t know what they don’t know.
Bad mortgage advice and “no cost loan” are 2 of the most expensive things on this planet… HLS

[HLS]

CA,,
Anyone who was “misinformed” about their loan either dealt with a predator OR just didn’t understand what they were doing. Nobody wants to admit that they just didn’t understand!!

With a 30 year fixed loan the payment NEVER changes. Make your payment by the 15th of each month and you will NEVER have a late charge or a problem. How hard is that to grasp ?

When somebody wants to get an ARM or an interest only loan because they think that they are going to beat the system, they are gambling.
That’s where the problems start. Greed kicks in.

Anyone is absolutely entitled to read every word on every page if they choose to. I’d like to know what you learned by doing so.

I cannot imagine putting docs in front of someone for anything other than what they agreed to.
This is what people get (and deserve) when they shop by rate or blindly go to a relative, friend or neighbor to get their loan.

The most foolish question that can be asked when “shopping” for a loan is “What’s your rate” yet that’s how most ppl do it, and they end up with the biggest liar.
It’s about as smart as “shopping” for a doctor, lawyer or mechanic solely by price. You’ll probably end up with a butcher or a hack.

There were plenty of idiotic mortgage advisors that made tens of thousands of dollars by giving greedy ppl bad advice.
If people were given an option to pay $100 to get honest advice they wouldn’t pay it. Advice from predators was free.

People were foolish to take ARM’s at a time of historically low rates. Most people could have chosen a 10 YR ARM or a 30 YR fixed, but the rate was higher and they were greedy. They shopped by rate and trusted a predator. It continues today.

People need to take responsibility for their decisions. People who fell for free/no cost loans will end up paying thousands of dollars in the long run if they stay in the loan. They don’t have a clue how screwed they are. There are know it alls on this site as well that think they understand loan options but actually don’t.

People don’t want to admit that they don’t know what they don’t know.
Bad mortgage advice and “no cost loan” are 2 of the most expensive things on this planet… HLS

[HLS]

CA,,
Anyone who was “misinformed” about their loan either dealt with a predator OR just didn’t understand what they were doing. Nobody wants to admit that they just didn’t understand!!

With a 30 year fixed loan the payment NEVER changes. Make your payment by the 15th of each month and you will NEVER have a late charge or a problem. How hard is that to grasp ?

When somebody wants to get an ARM or an interest only loan because they think that they are going to beat the system, they are gambling.
That’s where the problems start. Greed kicks in.

Anyone is absolutely entitled to read every word on every page if they choose to. I’d like to know what you learned by doing so.

I cannot imagine putting docs in front of someone for anything other than what they agreed to.
This is what people get (and deserve) when they shop by rate or blindly go to a relative, friend or neighbor to get their loan.

The most foolish question that can be asked when “shopping” for a loan is “What’s your rate” yet that’s how most ppl do it, and they end up with the biggest liar.
It’s about as smart as “shopping” for a doctor, lawyer or mechanic solely by price. You’ll probably end up with a butcher or a hack.

There were plenty of idiotic mortgage advisors that made tens of thousands of dollars by giving greedy ppl bad advice.
If people were given an option to pay $100 to get honest advice they wouldn’t pay it. Advice from predators was free.

People were foolish to take ARM’s at a time of historically low rates. Most people could have chosen a 10 YR ARM or a 30 YR fixed, but the rate was higher and they were greedy. They shopped by rate and trusted a predator. It continues today.

People need to take responsibility for their decisions. People who fell for free/no cost loans will end up paying thousands of dollars in the long run if they stay in the loan. They don’t have a clue how screwed they are. There are know it alls on this site as well that think they understand loan options but actually don’t.

People don’t want to admit that they don’t know what they don’t know.
Bad mortgage advice and “no cost loan” are 2 of the most expensive things on this planet… HLS

[HLS]

CA,,
Anyone who was “misinformed” about their loan either dealt with a predator OR just didn’t understand what they were doing. Nobody wants to admit that they just didn’t understand!!

With a 30 year fixed loan the payment NEVER changes. Make your payment by the 15th of each month and you will NEVER have a late charge or a problem. How hard is that to grasp ?

When somebody wants to get an ARM or an interest only loan because they think that they are going to beat the system, they are gambling.
That’s where the problems start. Greed kicks in.

Anyone is absolutely entitled to read every word on every page if they choose to. I’d like to know what you learned by doing so.

I cannot imagine putting docs in front of someone for anything other than what they agreed to.
This is what people get (and deserve) when they shop by rate or blindly go to a relative, friend or neighbor to get their loan.

The most foolish question that can be asked when “shopping” for a loan is “What’s your rate” yet that’s how most ppl do it, and they end up with the biggest liar.
It’s about as smart as “shopping” for a doctor, lawyer or mechanic solely by price. You’ll probably end up with a butcher or a hack.

There were plenty of idiotic mortgage advisors that made tens of thousands of dollars by giving greedy ppl bad advice.
If people were given an option to pay $100 to get honest advice they wouldn’t pay it. Advice from predators was free.

People were foolish to take ARM’s at a time of historically low rates. Most people could have chosen a 10 YR ARM or a 30 YR fixed, but the rate was higher and they were greedy. They shopped by rate and trusted a predator. It continues today.

People need to take responsibility for their decisions. People who fell for free/no cost loans will end up paying thousands of dollars in the long run if they stay in the loan. They don’t have a clue how screwed they are. There are know it alls on this site as well that think they understand loan options but actually don’t.

People don’t want to admit that they don’t know what they don’t know.
Bad mortgage advice and “no cost loan” are 2 of the most expensive things on this planet… HLS

[HLS]

CA,,
Anyone who was “misinformed” about their loan either dealt with a predator OR just didn’t understand what they were doing. Nobody wants to admit that they just didn’t understand!!

With a 30 year fixed loan the payment NEVER changes. Make your payment by the 15th of each month and you will NEVER have a late charge or a problem. How hard is that to grasp ?

When somebody wants to get an ARM or an interest only loan because they think that they are going to beat the system, they are gambling.
That’s where the problems start. Greed kicks in.

Anyone is absolutely entitled to read every word on every page if they choose to. I’d like to know what you learned by doing so.

I cannot imagine putting docs in front of someone for anything other than what they agreed to.
This is what people get (and deserve) when they shop by rate or blindly go to a relative, friend or neighbor to get their loan.

The most foolish question that can be asked when “shopping” for a loan is “What’s your rate” yet that’s how most ppl do it, and they end up with the biggest liar.
It’s about as smart as “shopping” for a doctor, lawyer or mechanic solely by price. You’ll probably end up with a butcher or a hack.

There were plenty of idiotic mortgage advisors that made tens of thousands of dollars by giving greedy ppl bad advice.
If people were given an option to pay $100 to get honest advice they wouldn’t pay it. Advice from predators was free.

People were foolish to take ARM’s at a time of historically low rates. Most people could have chosen a 10 YR ARM or a 30 YR fixed, but the rate was higher and they were greedy. They shopped by rate and trusted a predator. It continues today.

People need to take responsibility for their decisions. People who fell for free/no cost loans will end up paying thousands of dollars in the long run if they stay in the loan. They don’t have a clue how screwed they are. There are know it alls on this site as well that think they understand loan options but actually don’t.

People don’t want to admit that they don’t know what they don’t know.
Bad mortgage advice and “no cost loan” are 2 of the most expensive things on this planet… HLS

[CA renter]

HLS,

Many people would agree that they didn’t understand the loan — I’ve had a number of them openly admit this to me. Many of them were upset because they trusted their broker/lender to explain everything to them and not put them into a loan they couldn’t afford. The originators were assuring them they could afford it, and too many people are financially inept, and rely too much on “experts” to tell them what to do.

Many of them had a verbal agreement, then signed the docs without even reading the details because they trusted the loan officer/broker. Yes, many of them were dealing with predatory originators.

What I learned by reading our purchase loan docs (this was different from the refi that we were being rushed through, BTW):

-I had signed one set of documents that had the agreed-upon rate and terms. A week or so later, the broker said something had changed, and we needed to sign a new set of docs (don’t remember exactly what had changed, but maybe regarding the DTI ratio or something???). The new package was sent by courier, and the terms and rate were absolutely 100% different from the first package and the terms verbally agreed to. When I called them up and asked them why, he told me to just sign the docs and they’d change it back later. Needless to say, we didn’t go through with it, and ended up just selling and renting, instead.

I’ve had numerous people tell me the same story regarding their loans. This is why these regulations are needed, and quite frankly, why anyone who does this to borrowers needs to be sent to jail and have all their personal asset seized, IMHO.

For every foolish borrower, there was likely a predatory lender. Like you have said about your own business, a good lender/broker will not put somebody into a loan they cannot afford. They were only allowed to do so because they didn’t retain the loans and there were no negative consequences for their actions. This needs to change.

[CA renter]

HLS,

Many people would agree that they didn’t understand the loan — I’ve had a number of them openly admit this to me. Many of them were upset because they trusted their broker/lender to explain everything to them and not put them into a loan they couldn’t afford. The originators were assuring them they could afford it, and too many people are financially inept, and rely too much on “experts” to tell them what to do.

Many of them had a verbal agreement, then signed the docs without even reading the details because they trusted the loan officer/broker. Yes, many of them were dealing with predatory originators.

What I learned by reading our purchase loan docs (this was different from the refi that we were being rushed through, BTW):

-I had signed one set of documents that had the agreed-upon rate and terms. A week or so later, the broker said something had changed, and we needed to sign a new set of docs (don’t remember exactly what had changed, but maybe regarding the DTI ratio or something???). The new package was sent by courier, and the terms and rate were absolutely 100% different from the first package and the terms verbally agreed to. When I called them up and asked them why, he told me to just sign the docs and they’d change it back later. Needless to say, we didn’t go through with it, and ended up just selling and renting, instead.

I’ve had numerous people tell me the same story regarding their loans. This is why these regulations are needed, and quite frankly, why anyone who does this to borrowers needs to be sent to jail and have all their personal asset seized, IMHO.

For every foolish borrower, there was likely a predatory lender. Like you have said about your own business, a good lender/broker will not put somebody into a loan they cannot afford. They were only allowed to do so because they didn’t retain the loans and there were no negative consequences for their actions. This needs to change.

[CA renter]

HLS,

Many people would agree that they didn’t understand the loan — I’ve had a number of them openly admit this to me. Many of them were upset because they trusted their broker/lender to explain everything to them and not put them into a loan they couldn’t afford. The originators were assuring them they could afford it, and too many people are financially inept, and rely too much on “experts” to tell them what to do.

Many of them had a verbal agreement, then signed the docs without even reading the details because they trusted the loan officer/broker. Yes, many of them were dealing with predatory originators.

What I learned by reading our purchase loan docs (this was different from the refi that we were being rushed through, BTW):

-I had signed one set of documents that had the agreed-upon rate and terms. A week or so later, the broker said something had changed, and we needed to sign a new set of docs (don’t remember exactly what had changed, but maybe regarding the DTI ratio or something???). The new package was sent by courier, and the terms and rate were absolutely 100% different from the first package and the terms verbally agreed to. When I called them up and asked them why, he told me to just sign the docs and they’d change it back later. Needless to say, we didn’t go through with it, and ended up just selling and renting, instead.

I’ve had numerous people tell me the same story regarding their loans. This is why these regulations are needed, and quite frankly, why anyone who does this to borrowers needs to be sent to jail and have all their personal asset seized, IMHO.

For every foolish borrower, there was likely a predatory lender. Like you have said about your own business, a good lender/broker will not put somebody into a loan they cannot afford. They were only allowed to do so because they didn’t retain the loans and there were no negative consequences for their actions. This needs to change.

[CA renter]

HLS,

Many people would agree that they didn’t understand the loan — I’ve had a number of them openly admit this to me. Many of them were upset because they trusted their broker/lender to explain everything to them and not put them into a loan they couldn’t afford. The originators were assuring them they could afford it, and too many people are financially inept, and rely too much on “experts” to tell them what to do.

Many of them had a verbal agreement, then signed the docs without even reading the details because they trusted the loan officer/broker. Yes, many of them were dealing with predatory originators.

What I learned by reading our purchase loan docs (this was different from the refi that we were being rushed through, BTW):

-I had signed one set of documents that had the agreed-upon rate and terms. A week or so later, the broker said something had changed, and we needed to sign a new set of docs (don’t remember exactly what had changed, but maybe regarding the DTI ratio or something???). The new package was sent by courier, and the terms and rate were absolutely 100% different from the first package and the terms verbally agreed to. When I called them up and asked them why, he told me to just sign the docs and they’d change it back later. Needless to say, we didn’t go through with it, and ended up just selling and renting, instead.

I’ve had numerous people tell me the same story regarding their loans. This is why these regulations are needed, and quite frankly, why anyone who does this to borrowers needs to be sent to jail and have all their personal asset seized, IMHO.

For every foolish borrower, there was likely a predatory lender. Like you have said about your own business, a good lender/broker will not put somebody into a loan they cannot afford. They were only allowed to do so because they didn’t retain the loans and there were no negative consequences for their actions. This needs to change.

[Author]

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